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The History of Texas Electricity

May 20th, 2025 By Casey Thornton

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  • Texas Electricity
  • Booming Energy Market

Texas Electricity

Back in the early 1880s, nearly two decades after the Civil War, Galveston, Texas, hosted the first power plant, providing electricity to surrounding cities. Over the next two decades, more power plants running on steam and even dam water began to provide Texas electricity.

Within just ten years, you could witness entire cities lit up by power all through the evening, including heavily-populated areas like Houston, San Antonio, El Paso, Dallas/Fort Worth and Austin. Urban areas were quick to see growth. Rural areas didn’t see much of an increase in electricity service and usage. About 50 years later, in the 1930s the need for rural energy arose. To accommodate such, federal loans became available to those seeking plans.

A brilliant mind and supporter of farmland, President Franklin D. Roosevelt put a plan into action where farmers began forming rural electric cooperatives across the nation in 1936. By 1945, more than a million Texas residents had power in their homes.

In addition to the federal loans and rural electric cooperatives, several utilities gathered to develop the Texas Interconnected System (TIS). The main initiative behind this entity was to support efforts during World War II. Under TIS, any excess power was provided to companies that created ammunition, aircraft parts and similar material that could be used by the military.

Once this program was implemented, it didn’t take long for utility companies to notice how efficient and beneficial the way TIS was structured. That noted, the TIS decision-makers opted for what is now known as Electric Reliability Council of Texas (ERCOT). ERCOT, over time, acquired TIS and other utilities to become what is currently the Texas electricity grid.

Booming Energy Market

By 1990, Texas was looking to restructure the wholesale electricity market. Less than a decade later, 1999, the retail market was changed. This allowed for the option we now refer to as energy choice. What this did was granted Texas inhabitants the opportunity to choose who provided their electricity.

Fast-forward to 2018, and Texas electricity use is higher than it’s ever been. The same can be said about the heat waves. Weather directly affects rates and services provided by various energy providers. Just under 30 million people are the recipients of energy daily! Dam water and steam are no longer the main source of origin. Energy is now made by everything from coal and natural gas to nuclear power, oil, solar and wind. Beyond this, a rise in sustainable efforts have prompted more eco-friendly methods which have also become available in the energy marketplace.

So, with all these options now available, how do you choose the next service provider in your respective area and complementary to your usage? At Energy Outlet, we work with you, residents of the Dallas / Fort Worth and Greater Houston Area, to locate energy providers that fit your Texas electricity needs. With so many choices offered to residents, choosing an electric company can seem difficult. That is why we created the ultimate tool to search and compare energy.

Even those who are a fan of the latter-mentioned “green energy”, we highlight providers who offer energy-saving opportunities, incentives and green programs to help you save on your utility bill while saving the planet.

So, save time, money and energy. Head over to our free energy provider tool, where we help you get simple energy for a simple price.

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